Everything you need to know about how this revolutionary technology is changing the game for artists, musicians and DJs.
Being a creator in the NFT ecosystem might be intimidating, particularly when you’re first starting out. Although a thorough understanding of blockchain technology and non-fungible tokens (NFTs) can undoubtedly aid artists in their success, those are only little pieces of a much wider puzzle. Pricing, copyright, community building, and that’s only the beginning of the list, are other factors to think about. Sadly, there isn’t a thorough guidebook that can lead musicians through every step of the NFT procedure. And the situation is only growing worse as the ecosystem expands and changes.
This need is addressed by the music NFTs guide. It functions as a sort of road map, outlining everything musicians need to know to get from where they are to where they want to be. This tutorial is for you if you want to mint and sell your first music NFTs or if you already work in the NFT industry and need to fill in the blanks.
What are music NFTs?
A blockchain-based, individually identifiable cryptographic token called an NFT can be connected to a particular digital or physical object. A film, picture, or any other asset you can conceive of could be that asset. A music NFT is precisely what it sounds like in this sense: An NFT associated with a piece of music. A single song, a full album, a music video, or even a piece of music generated with a computer programme that algorithmically incorporates random patterns, colours, sounds, or shapes into the composition are all examples of non-traditional forms of music (NFTs).
Of course, music-related NFTs might also be connected to items like concert tickets or album covers. However, we don’t have to be overly particular about our definitions. It’s crucial to keep in mind that music NFTs are connected to digital objects that are classified as “music.” NFTs for music can be produced as an edition or a 1/1. The NFT has been distributed as a single, one-of-a-kind item, or 1/1. An NFT that allows for the unrestricted production of editions is known as an open edition. A limited edition can only be produced in a certain number of copies. Some musicians have made the decision to mint each song on an album as a 1/1 and sell them separately at auction.Others have produced music in open or limited releases. Each type of release has advantages and disadvantages. The rarity of the NFT rises with a 1/1. This can raise its worth as a result. Even these editions are less rare, they tend to foster stronger communities and boost fan loyalty. An edition would be a better choice, for instance, if you want NFT holders to have access to special future deals like ticket presales.
What benefit do they bring musicians?
The music industry, according to many musicians, is broken. Even if the emergence of streaming platforms has given music lovers easy access to almost any song, it hasn’t been as kind to musicians. The current business methods of the music industry appear to favour huge labels and platforms, frequently at the expense of the independent creators who are the backbone of the company. Actually, the average revenue per stream for artists is $0.003 to $0.005. What does this represent in terms of overall income? Let’s consult Spotify to find the solution. Despite being a $43 billion industry, there are only about 7,500 artists who make $100,000 or more annually. Considering these statistics, streaming appears to benefit both the consumer and the provider more than the artist.
Artists now have a new economic model to adopt in order to make money off of their own intellectual property thanks to NFTs. And they are able to do so without the aid of a middleman. Artists can mint their own music to a blockchain and sell their NFT autonomously rather than relying on a label or streaming provider, both of which take a cut. Additionally, NFT creators can receive royalties from subsequent sales thanks to blockchain-based procedures. This lessens issues with musicians not generating money off of the sale of their work as well as getting paid too little via centralised streaming services. Simply simply, a lot of people purchase music NFTs as a means of empowering and financially supporting the artists they adore.
How can I mint music NFTs?
Nearly every month, new NFT marketplaces and Web3 streaming services appear. So when it comes to creating music and getting it heard, musicians have a lot of possibilities. You can mint your music NFTs in one of two ways. You can either use a market or mint your own money. You will require a smart contract whichever option you select. Here is a comparison of how the two differ.
NFT marketplaces: On their smart contract, marketplaces allow you to mint NFTs. As a result, they contribute by handling the minting. Additionally, the majority of platforms have a sizable user base, so you can jumpstart community building by appealing to an existing fanbase. One thing to keep in mind, though: if you use a marketplace, your collection or shop won’t be entirely under your control.
Making your own smart contract: Creating your own smart contract is a great idea because it can be very useful when provenance is a factor. Numerous artists have chosen to issue their own NFTs under their own contracts, thus taking complete control of the NFT issuance process. While the procedure is more time-consuming and arduous, it is now simpler than ever to create a smart contract thanks to platforms like Manifold. Working with a marketplace is perhaps better for novices. Although you might not have all the freedom you want, it’s still a good beginning step as you get to know the NFT music environment. Marketplaces also enable you to start quickly because they provide an all-inclusive solution.
Where can I sell my music NFTs?
If you want to mint a batch or collection of NFTs that are all separately priced is something to think about when selecting a market. Another consideration is whether you want to mint one NFT at a time and sell it at auction. For the latter, take a look at OpenSea, LooksRare, and Rarible, some of the biggest NFT marketplaces in the world. With over 1 million active user wallets, OpenSea is the most well-known NFT marketplace. Two of the strongest rivals to OpenSea are LooksRare and Rarible. Platforms like SuperRare, Foundation, and Zora, on the other hand, are your best bet if you want to mint 1/1 NFT tunes (although both SupeRare and Foundation require an invitation in order to mint).
Additionally, keep in mind that starting a mint costs money. The majority of the time, minting will simply charge you a gas fee (transaction fee), but markets occasionally tack on other fees. Additionally, you might continue to pay fees even if the expenditures aren’t immediately obvious. Similar to this, make sure you do your homework when looking at royalty splits. When you mint on a website like OpenSea or Rarible, cross-platform royalties are not a given. Despite this, there are smart-contract and minting solutions like CXIP that help solve the issue and 0xSplits that assist with automated royalty splits to guarantee you receive secondary sales royalties regardless of where your NFTs are resold.
NFTs for music are still being developed extensively. Although, in the great picture of the NFT industry, musicians and artists still have to work hard to succeed in the NFT sector, it seems to be getting simpler every month. We will surely witness exponential growth within the music NFT ecosystem as more renowned artists make their way into Web3 and NFTs. However, there does appear to be a middle class in music NFTs, in contrast to the legacy music industry, which sometimes treats tiny artists with contempt.
There is a huge chance to give the people who make the music we love power back. We are able to develop a more egalitarian model of prosperity thanks to NFTs. However, it won’t happen by itself. It’s up to the cultural producers who are prepared to take a risk and try something different. And after reading this, that could be you.